**India’s First Deep-Sea Mineral Auction Indefinitely Postponed: Here’s Why**
*By Mudit Dube | Sep 29, 2025, 05:20 PM*
India’s inaugural auction of deep-sea mineral blocks, rich in critical minerals, has been indefinitely postponed. According to government officials who spoke with Moneycontrol, the decision follows a lukewarm response from potential bidders.
### Auction Details and Timeline
The auction was initially launched in November, offering 13 mineral blocks. These included three lime mud blocks, three construction sand blocks, and seven polymetallic nodule blocks. These blocks span from the Arabian Sea in the west to the Andaman Sea in the east and are abundant in valuable minerals like cobalt, copper, manganese, and nickel.
The original bidding deadline was set for February 27, but it has been extended multiple times to April 2, May 1, and then August 22. Despite these extensions, the auction did not take place on August 22 as planned.
An official revealed that several companies raised numerous queries, which is understandable as this is the first time such an auction has been announced. The government aims for broader participation and has therefore postponed the event until a new date is finalized.
### Importance of Critical Minerals
The minerals found within these blocks are vital components in manufacturing electric vehicles (EVs), defense equipment, and renewable energy technologies. As the global demand for these resources surges, securing domestic sources has become a strategic priority for India.
### Environmental and Political Concerns
The auction has faced opposition from political parties in Kerala and local fishing communities, who have raised environmental concerns related to undersea mineral exploration. These apprehensions highlight the need for a balanced approach that safeguards ecological sustainability while pursuing resource development.
### Technological Challenges
Experts acknowledge that technology remains a significant hurdle in India’s deep-sea mineral exploration ambitions. Arvind Virmani, a member of NITI Aayog, remarked during the India Mining Summit on September 18, “Basically, the entire supply chain, including technology, has become concentrated. Now the whole world is scrambling to create new technologies.”
India’s nascent capabilities in deep-sea mining technology underscore the complexity involved in this venture.
### Strategic Response to Global Supply Concerns
China currently dominates the global production of critical minerals, including rare earth elements essential for electronics, EV batteries, and defense systems. Recent export restrictions imposed by Beijing have heightened global supply concerns.
In response, India launched the National Critical Mineral Mission in January. This initiative aims to boost exploration, enhance domestic processing capacity, and promote recycling of critical minerals to reduce dependency on imports.
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India’s postponement of its first deep-sea mineral auction reflects both the complexities of this new frontier and the government’s intent to ensure robust participation and responsible resource management. As the country navigates technological, environmental, and geopolitical challenges, all eyes will be on how it advances toward securing its critical mineral needs.
https://www.newsbytesapp.com/news/business/india-s-first-deep-sea-mineral-auction-postponed-amid-poor-response/story
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